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Student Housing: Market Overview, Summer 2010

Report Authors: GVA Grimley

Report Summary:


The changing nature and growing size of the student population has increased the demand for good quality, affordable, purpose-built accommodation, particularly for international postgraduate students. Recent years have seen a trend of increasing partnership between universities and the private sector to deliver such housing.

Risks to future growth in student numbers include: the participation rate of young adults in the UK, the number of places available, the possible introduction of higher tuition fees, demographic trends and the ability of UK universities to compete in a global market for international students.

Accommodation for students is currently dominated by the private rented sector, which accounts for over 40% of all students’ housing needs. University owned and operated halls of residence accommodate around 20% of all students, with 7% residing in privately owned and operated halls. Approximately 20% of students live in the parental home with the remainder living in their own or other owner occupied houses.

A high proportion of student housing is in poor condition and in need of refurbishment, and in some locations there is a shortage of bedspaces in halls of residence. But in the current economic climate the development pipeline of private purposebuilt halls of residence is constricted and university funding cuts are expected to hit building projects particularly hard.

Developers of purpose-built private halls of residence are experiencing a maturing market, with rental growth slowing, although remaining positive. In addition, the viability of new schemes is being affected by a combination of a lack of debt funding and difficulties obtaining planning consent.

About the Author:

GVA’s award winning Research team provides high quality research and analysis to the business and its clients. Our market commentaries, thought leadership pieces and consultancy advice drive industry debate, distinguish GVA from its competitors, and add value for our clients.